Envirodyne Sells Shares To Artra As Finder`s Fee

February 19, 1986|By Matt O`Connor.

Envirodyne Industries Inc. has agreed to sell Artra Group Inc. 1.25 million common shares at a big discount as a finder`s fee for helping Envirodyne acquire the films-packaging business of Union Carbide Corp.

In announcing the completion of the acquisition Tuesday, Chicago-based Envirodyne said it paid $215 million in cash and notes for the business, which it has named Viskase Corp., and assumed ``certain liabilities.``

Viskase, with annual sales of about $275 million, will boost Envirodyne`s revenue by more than five-fold.

An Envirodyne spokeswoman said Artra bought the stock at a discount because its president, Peter R. Harvey, alerted Envirodyne to Union Carbide`s interest in selling the business, did the initial ground work, including meeting with Carbide officials, and led the negotiations early on. Harvey is a director of Envirodyne.

The sale will increase Artra`s holdings in Envirodyne to 35.2 percent of the shares outstanding, from 22.6 percent.

Envirodyne sold the 1.25 million newly issued common shares to Artra for $7 million, or $5.60 a share--less than half Envirodyne`s stock price in over- the-counter trading, but about the same price as when Northfield-based Artra assisted Envirodyne on the acquisition, the Envirodyne spokeswoman said.

The spokeswoman characterized the discount as equivalent to a finder`s fee.

Envirodyne said that Artra has agreed to vote all of its shares with Ronald K. Linde, Envirodyne`s chairman and president, ``on all matters`` as part of a 10-year voting agreement.

At 11 manufacturing plants, including a Chicago operation, Viskase makes plastic casings and bags for the processing and packaging of food products.

Envirodyne said Viskase will remain based in Chicago and continue to operate under current management.